You are operating an old machine that is expected to produce a cash inflow of...
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Finance
You are operating an old machine that is expected to produce a cash inflow of $5,400 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $20,400 but is much more efficient and will provide a cash flow of $10,600 a year for 4 years.
Calculate the equivalent annual cost of the new machine if the discount rate is 15%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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